‘IDBI bank was handed over to us in poor shape’: Sitharaman counters Rahul

Rahul Gandhi backs IDBI Bank employees amid protests over Centre's stake sale

NEW DELHI: Leader of opposition in Lok Sabha Rahul Gandhi on Friday extended support to IDBI Bank employees amid protests by bank unions and political parties against the Centre's decision to sell its stake in the lender.The Congress leader shared a letter addressed to the IDBI Bank family on X, criticising the government's move and contrasting it with the establishment of the bank during the Congress regime."During Congress's time, IDBI was established—to build the nation's industry. During Modi's time, first the bidding was seen, then the price was set," he said.

"During Congress's time, banks were being created. During Modi's time, they are being sold.

I stand with the employees of IDBI Bank," Rahul added.The Centre had asserted a day earlier that the sale of its stake in IDBI Bank was part of a "strategic restructuring". It said the process followed the provisions laid down in the request for proposal (RFP) and was undertaken after approval by a panel of secretaries and the Cabinet Committee on Economic Affairs.

The bank's disinvestment process had to be called off earlier this year after the bids received were found to be significantly below the reserve price.

The government subsequently invited fresh bids from the two players in the fray and used two valuation methods before deciding to sell its stake to Fairfax Holdings.In a statement, the government said the first round of the process was conducted in line with its internal practices, which were indicative guidelines rather than rigid rules or regulations.“The foreword itself states that the procedure suggested is not to be construed as a rigid, legal framework, which may require due adaptation/ modification in the best interest of successful execution of the transaction in a time bound manner. Given the complex nature of strategic transactions, the indicative guidelines give flexibility to ensure cost and time spent in lengthy processes is not wasted,” it said.